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New Delhi Centre on Thursday asserted in the Supreme Court that the "bold move" of demonetisation would eradicate black money and slush funds operating since Independence, which created a "parallel economy" hitting the poor and middle classes. The Centre, which filed an affidavit on note ban, said the decision on which total secrecy was maintained, would now help in proper implementation of the ambitious Jan Dhan Yojana under which around 220 million bank accounts for poor people have been opened.

The highest NPAs, of over 15 per cent, are in leather, textile and steel industries

Banks concentrating on a few states has led to rising loan defaults (giving up of loan repayment) and non-payments in micro as well as small and medium enterprises (SMEs), a report by TransUnion Cibil said on Thursday.

"Focusing on a few states deprive the lenders of an opportunity to exhibit calibrated loan growth. Currently, some banks tend to have analytical and strategic focus on five or at most 10 states and may not be fully sensitive to industry credit profile divergences," TransUnion Cibil India managing director and chief executive Satish Pillai said.

He cited Rajasthan, which has the lowest non-performing assets (NPAs or bad loans) for commercial loans at two per cent, but also the lowest concentration of loans.

According to the report, the NPA rate in micro enterprises has been range-bound between 6 and 6.5 per cent, but the SME segment shows a worrying trend in terms of loan quality, a…

The Union Cabinet late on Thursday cleared a proposal to amend the Income Tax (I-T) Act to levy close to 60% deduction on unaccounted deposits in banks above a threshold, said sources.

The decision was purportedly prompted by a surge in deposits — about ~20,000 crore, according to some reports — in Jan Dhan accounts since November 8, when the central government announced the demonetisation of Rs 500 and Rs 1,000 currency notes. The amount deposited in this period is almost 50% of the total deposits in these accounts in the two years since their launch. The move is also aimed at preventing black money holders from circumventing existing I-T Act provisions.

Also, earlier in the day, the government, facing severe attacks over difficulties in implementing demonetisation, extended till December 15 the facility of using old Rs 500 notes in public utilities and included more services such as mobile recharge …

An anti-profiteering clause with penal provisions has been proposed under the draft law

NEW DELHI: India Inc will have to pass on any benefits derived from the proposed Goods and Services Tax (GST) to consumers in the form of reduced prices or face penal provisions, according to the draft law, which has proposed an anti-profiteering clause.

An authority would be created or empowered under GST law to ensure that companies do not pocket gains in lieu of input tax credits or lower rates, according to the draft law circulated to state governments.

“The central government may by law constitute an authority, or entrust an existing authority constituted under any law, to examine whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate have actually resulted in a commensurate reduction in price of the said goods and or services supplied by him,” the draft says.